# In the matter of Saurabh Jain and Anr. Vs. Union of India and Ors. Writ Petition(s)(Civil) No(s). 679/2020

> SC judgment dated 2020-07-20. Citation: TCN-2020-SC-00053. The Writ Petition was filed concerning the invocation of personal guarantees issued by…

- **Court:** SC
- **Order date:** 20 Jul 2020
- **Citation:** TCN-2020-SC-00053
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/saurabh-jain-and-anr-vs-union-of-india-and-ors-writ-petition-ace8038a

## Summary

### Background

The Writ Petition was filed concerning the invocation of personal guarantees issued by promoters/managerial personnel, as directed by a Circular from the Ministry of Finance. The petitioners claimed that Public Sector Undertakings were not invoking these guarantees, leading to significant losses for the public exchequer.

## Facts

The Ministry of Finance issued a Circular directing the invocation of personal guarantees issued by promoters/managerial personnel. Public Sector Undertakings were allegedly not invoking these guarantees, leading to financial losses. The petitioners filed a Writ Petition seeking intervention. The Court acknowledged the Ministry's directive and the petitioners' concerns.

## Issues and analysis

### Issue 1: Whether the Court should intervene to compel Public Sector Undertakings to invoke personal …

**Ratio:** The Court has discretion to allow withdrawal of

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**Reasoning:** The Court determined that it was appropriate for the petitioners to first approach the

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**Interpretation:** This reflects a preference for administrative resolution of disputes before

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**Application:** The Court applied this principle by allowing the petitioners to withdraw their

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## Parties

- **Judges:** ROHINTON FALI…; NAVIN S…
- **Appellants:** SAURABH…
- **Respondents:** Union of…

## Timeline

- **2020-07-20 — Hearing…**: The petition was called…
- **N/A — Ministry of Finance…**: Ministry of Finance directed personal guarantees issued by promoters/managerial personnel…

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